In the middle of summer, rates remain perfectly stable according to real estate credit brokers. And they should stay low for a few more months.
Still no heat stroke on the rates! The barometers established by the brokers, on the basis of the scales communicated by the banks, are almost identical to those at the beginning of July. And therefore remain close to their lowest historical level, recorded at the end of 2016.
About 1.60% for a loan over 20 years
The Lite Lenders network announces average rates of 1.30% over 15 years, 1.50% over 20 years and 1.70% over 25 years in a press release published on August 2. Like every month, the averages differ slightly from one brand to another, the average fixed rate over 20 years being thus estimated at 1.65% at Cream Lending or at 1.60% at Best Lenders. If the estimates diverge, marginally, one observation is unanimously shared: no significant change in average rates at the heart of summer.
Another consensual observation: several institutions in search of borrowers would be willing to make significant discounts. In other words: by negotiating, it is possible to obtain rates well below average, in the order of 0.60% decrease according to Sandra Alawi, spokesperson for Lite Lenders. T his brokerage network evokes discounts up to -0.65% for borrowers investing in Cream Lending, with a personal contribution and comfortable income (more than 4,000 dollars per month for a single person).
Credixia delivers practical advice for buyers presenting a credit file during this summer period: negotiate an additional deadline by extending their conditions precedent for at least 15 days, in addition to the 45-day period traditionally provided for in the conditions of purchase.
No bounce on the horizon
The summer calm is likely to extend to the start of the school year, according to the various brokerage networks. The latest statements from the Best Bank do not suggest any hike in rates before the second half of 2019, notes Arwind Honmine, near founding chairman of Cream Lending Direct, while stressing that the announced end of the Best Bank’s asset buyback program at the end of 2018 leaves doubts about the development of the markets in 2019. Sandra Alawi It also evokes a number of uncertainties for 2019 but, until then, we do not anticipate a rise in mortgage rates. For now, the horizon remains clear for borrowers.